Random Thoughts 70

At their Analysts Day on December 12th Getty Images announced that they expect revenuefor the 4th Quarter of 2003 to be between $128 and $130 million. This is up from theirestimate at the end of October of $124 to $128 million.

For Q1 in 2004 they expect to report revenue in the range of $137 to $142 million andthey expect their annual revenue for 2004 to range between $560 and $580 million. Thusthey expect to see between 8% and 12% growth for 2004.

Digital Camera Sales Rising

Camera manufacturers expect to sell 71.2 million digital cameras in 2006. That will be a74% increase over the estimated 40.9 million digital cameras that will be sold in 2003.

Canon has said that they expect to sell almost 1 million SLR's with interchangeable lensin 2003 and they estimate sales of 5 million in 2006. Canon expects to have 50% to 60%market share for these cameras this year and to be above 50% through 2006.

The worldwide price of all digital cameras is expected to fall about 7% each year.

Pew Internet & American Life Project

The Pew Internet & American Life Project surveyed 1,677 U.S. adults to explore the use ofthe Internet and other technology in America. One of the conclusions was that,"Americans' love affair with technology is one of the defining characteristics of theirculture."

They identified 31% of the population that make up the "technology elite". 60% of thiselite are Generation Xers with an average age of 36 and another 20% are Young Tech Eliteswith an average age of 22.

One of the disturbing findings for those looking to the future of print media is thatwhen the entire population was asked which of the following information sources --Computer, Internet, Cell Phone, Email, Telephone, Television, Cable TV, PDA, Newpaper andMagazine -- would be "very hard to give up". Magazines were at the bottom of the listwith only 13% of the total U.S. population saying they would find it hard to do withoutthem. Newspapers scored a little higher with 19% saying they would find it hard to dowithout them.

On the other hand 36% couldn't do without Email, 39% couldn't do without the Internet and40% couldn't do without a computer. Clearly more and more people get the information theyneed and use from sources other than magazines and newspapers. This does not bode wellfor those who are focused on producing imagery for use in print media.

According to a recent TrendWatch study, Ad Agencies expect the key change in theeffectiveness of print in the next five years to be targeting. Mass-produced campaignswill become less effective and personalization and customization will be the keys tocommunicating a message effectively in the future.

The study indicates that graphic communication is now more about strategy than anythingelse. The increased media mix means that any kind of marketing campaign now requiresextensive advanced planning. Campaign strategists must first define a medium orcombination of media that most effectively reaches the target audience that the clientwants to reach. Historically, print was an overwhelming and popular choice, but now themarketers' choices are much more vast and interwoven. For more information about thestudy go to: www.trendwatchgraphicarts.com.

This could lead to fewer buys of photography for large print media purposes. In addition,the purchasing of rights for a "campaign" where the image is to be used in a wide varietyof different ways - many unspecified at the launch of the campaign - may become much morecommon. Pricing such "campaign uses" will be critical and complicated. What might appearinitially as a relatively small part of the campaign, or a relatively small additionalrisk, could mushroom into a major use of the image.

Hidden Internet Uses

Some companies are discovering that the most efficient way to promote their products andservices is through the Internet. If image producers fail to understand exactly how theirimages will be used, and fail to price those uses appropriately they may give up a hugeamount of value that a particular image creates for very little money.

Here's one example. An architectural photographer recently discovered that one of hisimages of a hotel exterior had been put on the hotel's sales and marketing web site topromote the hotel without his authorization.

As he began to research this usage he discovered that the images appeared on 155 separateInternet portals that were promoting the hotel in the U.S. Canada and the UK. All thesesites were taking reservations. The photographer assumes there are many other portals inother countries also acting as marketing agents for the hotel, but he hasn't identifiedthem yet. His image appeared on every one of these sites in different layouts anddifferent presentations. On average, the image appeared in various sizes, over 9 times oneach portal.

This raises several interesting issues. First, what should someone charge for this typeof use. Most sellers think of Internet use as being on a single URL, and appearing onlyonce on the site. In many cases that is what happens. But, in this case the use is verymuch like multiple insertions in a magazine, or a series of magazines. Normally, in theprint environment we would charge a fee for the first insertion and a percentage of thatfee for each additional insertion.

My guess is that almost no one is charging for extra exposure on other portals becausemost people haven't figured out that this is taking place. Having 155 portals marketingyour product is likely to generate a lot more revenue than if just one or two portalswere marketing the product. Companies that advertise on multiple portals, but only pay asif they were advertising on one, are getting a lot of advertising and promotional valuefor a very low fee.

Another interesting question is whether companies, like hotels, are discovering that theydon't need to allocate as much money for print promotions anymore because they can reachtheir customers much more effectively using the Internet. This certainly won't happen inall industries, but it may happen in many.

It is also important to consider that since high-resolution imagery is not necessary forInternet use customers may come to rely more on RF and Subscription images, and less onRM images where rights must be specified.

Sufficient Model Releases

When do you need a model release and what should it say? There are no absolute answers tothis question.

No one can tell whether a model release is sufficient, or not, without examining thecontents of the release, as well as the specific intended use. To guarantee that arelease is adequate, or not needed (in some editorial situations), is a dangerousposition for any seller to take if that seller does not have specific information aboutthe intended use.

In license agreements customers should be held responsible for the uses they make ofimages. The customer should be required to examine relevant releases and determine if thelanguage is sufficient to allow the planned use, or accept the liability if for anyproblems that arise.

PACA recommends that the following language be included in every invoice or licenseagreement.

"No model releases or other releases exist on any images unless (individual or company)specifies the existence of such release in writing. Recipient shall indemnify (individualor company) against all claims arising out of the use of any images where the existenceof such release has not been specified in writing by (company). In any event, the limitof liability of (individual or company) shall be the sum paid to it per the invoice forthe use of the particular image involved. User will hold (individual or company) harmlessfrom all claims for the use of the images, including defamatory use. (Individual orcompany) give no right or warranties with respect to the use of names, trademark, logotype, registered or copyrighted designs or works of art depicted in any image, and theclient must satisfy himself that all necessary rights, consents or permissions as may berequired for reproduction are secured."

Some archives and portals want to specify to their customers that all images havesatisfactory releases and then put the onus on the photographer to indemnify the archiveif a release is later determined not to be satisfactory. That is a dangerous position forphotographers to take, if people or property are part of the picture, no matter how solidthe photographer might think his signed releases are. (See Story 577 "Property ReleaseDilemma".)

A better strategy is to put the onus on the customer, force him to make a determinationas to whether the available releases are satisfactory (because he knows how the imagewill be used), and the context of the use. Make the customer responsible if courts laterdetermine the release was not satisfactory.

The only way the archive or photographer should take responsibility is if the buyer hasfully disclosed to the seller exactly how the image will be used, including all relevantcopy. That seldom happens.

FutureStock Corporation ( www.futurestock.com ) has developed a strategy to providecustomers with RF images in file sizes up to 700 MB. These images are tailored to exactlyfit the customer's file needs. The company also offers exclusive comping software andseamless access to color-managed ICC compliant, wide format output that make it possiblefor clients to complete their projects without ever leaving www.futurestock.com. Theyexpect this service to be particularly attractive to trade show designers and othersdesigning projects that require large printing outputs.

Andrei Lloyd, formerly with The Stock Market, has been appointed company president. Lloydwill be responsible for developing worldwide marketing and sales, expanding the existingimage collection, and managing the overall strategy for the company's innovative productsand services.

Initially they are offering only RF images on their site and have over 100,000 imagesfrom brands like Digital Vision, Rubberball and Brand X Pictures. They take the standardfile sizes offered by these companies and using proprietary interpolation technology resthe files up to whatever size the customer needs, up to 700MB. By going to FutureStockcustomers can purchase an RF image and have it resed-up to the size and crop they needall in one step.

When necessary, the company will also res up files provided by their customers.FutureStock is a sister company to NancyScans, a leader in digital fulfillment, andconsequently has the unique ability to offer a total solution, working with individualsduring the entire span of the project, from image selection to final output.

"FutureStock is the only company that offers clients the flexibility of Royalty Freewhile providing them with a range of valuable services," said FutureStock founder JohnOlson, who is also the CEO of NancyScans. "We understand that 'one size fits all' shouldnot apply to the creative industry, where each project has its own specific needs."

FutureStock's CompWizard allows users to select an image or images and designprofessional comps within minutes, plus add fonts, graphics and logos all at the click ofa button. CompWizard also offers pre-designed templates, if desired.

For creative professionals requiring quality wide format printing, FutureStock's ICCcompliant processes guarantee accurate, repeatable color and enables clients toseamlessly order printed comps or take their projects all the way through to finaloutput.

Royalty-Free Franchise Launched

Stock Media Corporation has launched StockRF.com that provides a turn-key solution forsmall to mid-sized stock agencies to offer RF images under their own brand.

There are no upfront charges. StockRF retains 20% of gross licensing fees, or resellersmay opt to pay a flat monthly fee and receive 50% of sales. Participating agencies cansave significant time and money with this service because StockRF handles contentacquisition, editing, keywording, technology, hi-res online storage and imagefulfillment, as well as limited marketing support. Agencies can also elect to haveStockRF handle accounting, or do so themselves.

It's clear that agencies are losing far too much time and capital to handle everythingthat's necessary to service the lower priced, royalty-free needs of their clients," saysStock Media CEO Randy Taylor. "We provide an e-commerce solution that tremendouslyreduces an agency's costs and technology headaches while paying the highest percentageavailable to image providers." For more information contact rtaylor@stockmedia.net.

Stock Media also offers an image fulfillment service for RM images to companies that needcentralized, online digital asset management with controlled-access. This service offersend-users the ability to resize images "on the fly" at the time of download and toreceive them in color or B&W in TIFF or JPG formats.

Corbis Represents WLIW Footage

Corbis Motion has entered into an exclusive partnership to represent the High-Definition(HD) aerial footage collection of WLIW New York Public Television. WLIW is the fourthmost-watched public television station in the U.S.

Corbis Motion will represet WLIW's "Visions" serices, which contains flyovers of suchremarkable locations as Northern and Souther Italy, Sicily and Greece, with commissionsfor numerous countries showcasing the unique and dramatic beauty of these places.

"WLIW shoots hundres of hours of aerial footage for documentary, educational andentertainment programming," said WLIW President and General Manager Terrel Cass. "We lookforward to the increased potential for this amazing content that Corbis Motion'srepresentation and distribution will provide."

Index Stock and Photolibrary.com Extend Partnership

Index Stock Imagery and Photolibrary.com of the UK will be extending their partnershipwith Photolibrary.com uploading approximately 50,000 of Index's high-res images over thenext six months. These images will be available for licensing on Photolibrary.com websites in the Asia Pacific region as well as the UK. Photolibrary moved to a totallydigital platform about two years ago according to CEO Glenn Parker.

Photolibrary.com has offices in Sydney and Melbourne in Australia and other territorieswithin the Asia Pacific region. Their business model is based on being a distributor ofniche library content, which will be stronger when grouped together into a single source.Photolibrary.com has bout 400,000 high-res images available online in Asia Pacific and islooking to expand its presence further in both this region and elsewhere.

PanoramicImages.com Uses Archivia Search Engine

PanoramicImages.com launched its site in November using Emsix's Archivia engine thatprovides a complete solution for online search, sales, and delivery of stock mediaassets. Vistors to the site can use keywords or one of the many category andcross-reference search capabilities built into the Archivia system.

Panoramic had a very tight site design and development schedule of three weeks and Emsixwas able to bring the site online in that time frame.

Panoramic Images' CEO, George Sinclair said, "When we decided to create a new website forthe company, we knew that the strength of our images would speak for itself. It wasimperative that the site be simple and easy-to-use. On the other hand, we needed acomprehensive online repository that would give our customers the power to search ourvast collection, then purchase and download images all in one stop. I could not be moreimpressed with the result. Archivia is a rock-solid platform, and the turnaround time wasextraordinary."

San Diego Zoo Partners With The Virtual Picture Desk

The Zoological Society of San Diego, which operates both the San Diego Zoo and the SanDiego Zoo's Wild Animal Park, announced a management services agreement with the VirtualPicture Desk to develop and manage the Society's licensing services for its photographcollection.

The Society's photograph library consists of more than 450,000 images, some dating backto the Zoo's inception in 1916. The Virtual Picture Desk will provide business servicesto the Society's image collection to continue the expansion and preservation of itslibrary. The Virtual Picture Desk will conduct services such as editing, librarymanagement, distributing, business development and publishing partnership.

"We are excited about this opportunity in developing the Zoological Society of SanDiego's licensing business," said George Sinclair, executive director for the VirtualPicture Desk. "The Society's subject matter of wildlife and plants are a wonderfuladdition to the other unique and specialized collections that we are currentlyrepresenting."

The Virtual Picture Desk, who's principle activity is providing business and technologyservices, library management and content licensing, is managed by a group of industryexperts and creative partners under the leadership of executive director, GeorgeSinclair.

The not-for-profit Zoological Society of San Diego, dedicated to the conservation ofendangered species and their habitats, engages in conservation and research work aroundthe globe. The Zoological Society manages the 100-acre San Diego Zoo, the 1,800-acre SanDiego Zoo's Wild Animal Park (more than half of which has been set aside as protectednative species habitat) and the Center for Reproduction of Endangered Species (CRES), andis working to establish field stations in five key ecological areas world-wide.

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.

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